A Country Is Deemed to Have a Comparative Advantage in a Product

question 56

Multiple Choice

A country is deemed to have a comparative advantage in a product if:

• A)the world price is lower than its domestic price
• B)the world price is higher than its domestic price
• C)the world price is equal to its domestic price
• D)none of the above

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Definitions:

Inventory

A complete list or stock of goods and materials held by a business to meet customer demand.

Tangible Assets

Assets that have a physical form such as property, plant, and equipment.

Past Earnings

The historical profits or net income that a company has generated over a specific period, often used as an indicator of financial health and operational success.

Future Earnings

The projected income a company or individual is expected to generate over a future period.